Monday, August 07, 2017

Shrkeli, Convict

Businessman Martin Shkreli, once dubbed the “most hated man in America” for raising prices for critical drugs, was found guilty Friday of two counts of securities fraud and one of conspiracy in a federal court in Brooklyn.

The baby-faced and gutter-mouthed 34-year-old, often known as "Pharma Bro,” had been charged with eight counts of securities fraud and conspiracy to commit both securities and wire fraud. He was acquitted of five of the charges, including the most serious, which allowed Shkreli and his defense team to claim victory.

Prosecutors claimed that Shkreli ran what was effectively a Ponzi scheme, defrauding investors by exaggerating his own credentials – for example, claiming that he attended Columbia University. He used their money to capitalize a new drug company, Retrophin, which he then looted to pay them back, they alleged.

Shkreli was acquitted on the charges relating to Retrophin, but convicted of making fraudulent misrepresentations regarding two hedge funds he ran.